Investors shrug off OPEC report that U.S. oil output could decline later this year
*Nymex Oil Falls to Intraday Low, Down 3% at $43.50/Barrel
(MORE TO COME)
LONDON—U.S. oil prices were close to a six-year low on Monday, with investors largely shrugging off a report by the Organization of the Petroleum Exporting Countries that U.S. oil output could begin to decline later this year.
Markets were instead pulled lower by the prospect of Iranian oil flooding an already oversupplied global market. U.S. and Iranian negotiators are hoping to seal a tentative political agreement on Tehran’s nuclear program before an end-of-March deadline. This could pave the way for increased Iranian oil exports and would be bearish for prices, which are again under pressure after several weeks of relative stability.
April-dated Brent crude on London’s ICE Futures exchange fell 1.3% flirting with $54 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded down 1.3% to $44.27 a barrel. Last week, Nymex crude fell 9.6% to a six-week low. Brent crude lost 8.5% and has been down for two consecutive weeks.Source: http://www.wsj.com/articles/oil-prices-decline-on-hopes-of-tentative-iran-deal-1426500985?mod=WSJ_hp_LEFTTopStories#livefyre-comment